Agenda item

Report of the Director of HR and Customer

Richard Henderson, Director of HR and Customer, introduced the report proposing revisions to the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006 – Policy Statement (DCR).  He highlighted the following points:

(a)  In the Council’s current difficult financial position, voluntary redundancy is an option for achieving in-year savings quicker, with less disruption and impact on staff than a compulsory redundancy programme.

(b)  The cost of increasing the multiplier has to be balanced against the need for a sufficient incentive to encourage employees to take up the offer.

(c)  The current allowance within the Council’s budget is unlikely to cover the cost of the proposed enhanced redundancy payments, but costs will be closely monitored.

(d)  It is difficult to predict how many, and which employees may choose to apply for voluntary redundancy.  As the voluntary redundancy payment is based on the number of years’ service, it is likely to be more attractive to older employees.  Once it is known a full Equality Impact Assessment will be carried out. 

(e)  The departure of employees is likely to leave gaps in service provision and there will need to be service redesign to address this.  Equality Impact Assessments will be carried out as part of the service redesign process.

During discussion the following points were raised:

(f)  The Council has tried to minimise job losses because it believes that keeping people in work is important.  However as a result of the significant budgetary pressures facing the Council, which is largely related to the impact of the current coronavirus outbreak, it is going to be necessary to set an in-year budget and it won’t be possible to do this while continuing to protect jobs in the same way as previously.

(g)  It is acknowledged that it is a very difficult time for the workforce and it is important that the programme is handled sensitivity.

(h)  Although it would be preferable to not lose any employees, if it must be done then it is better to offer an element of choice and enhancements.

(i)  There will be some restrictions on which posts will be accepted for voluntary redundancy.

(j)  As the voluntary redundancy programme will be based on volunteers coming forward, at this stage it isn’t possible to predict the impact that it could have on the diversity of the workforce.  It is difficult to refuse or exclude individuals from redundancy based on protected characteristics.

(k)  This policy relates to the Council’s own workforce and not the workforce of is wholly owned companies.

Resolved to:

(1)  approve the amendments to the Council’s DCR Policy Statement, as set out in Appendix 1 to the report, to allow for enhancement to redundancy payments to be made on the following basis:

For employees aged under 55

·  any resultant redundancy payment payable to an employee aged under 55 on Local Government Services (“LGS”) grades A to K (or equivalent) will be based on a multiplier of two (2x) weeks pay subject to the statutory limit on a week’s pay imposed by section 227 of the Employment Rights Act 1996 (“ERA”); and

·  any resultant redundancy payment payable to a Strategic Leadership Management Group (“SLMG”) employee aged under 55 will be based on actual weeks pay and will not be subject to the statutory limit in section 227 of the ERA.

  For employees aged 55 or over

·  the amount payable will be based on weeks pay subject to the statutory limit on a weeks pay imposed by section 227 of the ERA.

(2)  note that these discretions will only be exercised where the Council’s Corporate Leadership Team makes a determination to initiate a voluntary redundancy programme that is linked to corporate budget proposals and budgetary savings.